Businesses consider climate change an issue but survey finds firms need help as cost pressures rise and temperatures reach record levels

As temperatures reach dangerous and record levels in the UK, Business West's Quarterly Economic Survey of businesses in the South West has revealed that 71% consider climate change to be a core ‘business issue’ but lack the resources to make changes due to cost pressures and lack of information.

The results come as businesses are facing the highest inflation rate in 40 years, and as a record number of Business West survey respondents cite inflation as a key issue of concern. 

Nearly 400 businesses told Business West how they felt about climate issues in relation to their business last month, and the key themes show a gap between recognition of the challenge and action. A majority (71%) consider climate change to be a business issue but fewer than a quarter have taken concrete steps to reduce their impact such as measuring their carbon footprint or devising a plan to reduce it.  

Some changes that have the dual benefit of saving money and helping the environment, such as replacing business travel with virtual meetings, insulating their premises, or diverting waste to recycling were more likely to have been adopted.

Those businesses who want to take action in the region, report facing significant challenges and barriers that prevent them from doing so, according to the survey.

The most frequently cited barrier for businesses was factors outside of firms’ control, such as operating from rented premises, or the supporting infrastructure not being available where it’s needed, which affected over 30% and 27% of firms respectively.

John Thurston, Chairman of Watts of Lydney, a vehicle dealer and manufacturing company based in Gloucestershire said:

“I’m planning to supply electric lorries to businesses, and they’ll need me to work out their infrastructure for how they're going to charge and where they're going to do it. Gaining access to that information needs to be more straightforward.”

Another major theme that emerged was businesses struggling to afford the upfront investment when there are demand on other resources. This was reported by almost 30% of respondents.

Val Hennessey, Director of International House Bristol, a language school based in Bristol, said:

“We would like to put in air source heat pumps at both our premises, but the costs are prohibitive.”

43% of respondents reported that they needed financial support such as access to loans and grants and tax incentives such as capital allowances.

However, a substantial number also mentioned finding the options overwhelming (13%) and/or lacking the knowledge to decide how to proceed (20%). Businesses could benefit from information and advice from a trusted source (30%), and clarity on how regulations apply to their sector (24%). 

Deborah Flint, Managing Director of Cinderhill Farm, a food producer based in Gloucestershire said:

“All the companies I look at seem to make the task sound so frighteningly enormous that I don't know who to trust or where to go. Also, I feel we are a complex as well as small enterprise - owing to some of the measures we take, so we need help which takes this into account.”

Responding to the survey findings, Sue Tranter, Net Zero Project Manager at Business West, said:

“Climate change is a pressing worldwide issue and firms are aware that they can make positive changes now to help mitigate the impact for future generations.

“However, without sufficient support and guidance, it is clear businesses are confused about the next best steps to take to help tackle the climate crisis. 

“It is worrying that a higher number of businesses are reporting that they need advice, indicating a possible lack of progression since this time last year.

“It is imperative that the government provide further support to businesses to enable them to prepare and adapt for the future.”

Business West is carbon neutral and aims to achieve net zero carbon emissions by 2030 - the first Chamber of Commerce in the UK to do so. To find out more about our journey to net zero and how we are working to accelerate the decarbonisation of businesses in our region visit our Trading to Net Zero hub.